Nezavisne novine: The Management Board of the Indirect Taxation Authority of BiH has not yet deliberated the possibility of abolishing the VAT on funds from the Pre-Accession Assistance of the EU to our country.
Abolishing the VAT on approved assistance has been asked by the European Commission, which has stopped realization of the projects for BiH worth almost 50 million Euros.
"By the Framework Agreement between BiH and the EC on the Pre-Accession Assistance it has been précised that the governments of BiH will abolish the VAT on these funds or ensure their refund", says Zara Halilović, executive assistant of the director of the Directorate for European Integrations of BiH for coordination of assistance of the EU. She points out that the European Commission, dissatisfied by the previous realization of the Agreement on refund of the VAT, has asked for abolishing the VAT.
"Because of that, the EU has stopped the tender procedure for the projects from the IPSA for 2007 in a value of almost 50 million Euros", explains Halilović.
By the Law on Indirect Taxation of BiH, it has been précised that the donors pay the tax on donations. By the same Law, the refund of the paid VAT has been ensured to donors, but after the Indirect Taxation Authority and the Ministry of Foreign Affairs of BiH confirm that the donor has a right on refund of the VAT.
"Procedure of refund of the VAT on donations is very complicated. We saw that from the beginning of application of the Law and the first time the law is changed, the Indirect Taxation Administration of BiH will suggest freeing donations of the obligation of paying the VAT. Up until now, the MB of the ITA has not deliberated changes of the Law in this part, and when will this happen, I cannot say it", has been said by Ratko Kovačević, spokesperson of the Indirect Taxation Administration of BiH.
He reminds that the changes of the Law can be initiated by the MB of the ITA, the Council of Ministers and the Parliament of BiH.